For small businesses to compete with larger corporations, they are constantly on the hunt to find better and more efficient ways to satisfy their customers. Blockchain is a great way to conduct transactions and raise capital and it can be useful for any business, including small to medium-sized businesses.
Many small businesses might think that cryptocurrency is also for large companies. However, cryptocurrency is being highly used by different industries including online businesses, restaurants, bakeries, nail salons, gyms, and others. In fact, more than 15,000 businesses worldwide accept Bitcoin. Some key companies who have invested in crypto include Amazon, Microsoft, PayPal, IBM, and more.
Examples of some of the popular cryptocurrency include:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
- Zcash (ZEC)
- Stellar Lumen (XLM)
- Bitcoin Satoshi’s Vision (BSV)
Here are some of the key advantages of how your business can benefit from cryptocurrency against using more traditional forms of payment.
Cryptocurrency is the new form of payment
The first thing that your business can do to ease into blockchain technology is to accept cryptocurrency as a form of payment. This will strengthen your commitment to Bitcoin and other cryptocurrencies. You will need to go through planning and testing, evaluate money that will go into a digital wallet, develop a merchant gateway, amongst others, to plan your strategy into cryptocurrency.
Using cryptocurrency will allow you to deal directly with your customer which will reduce transaction cost. Another benefit is that payments are permanent and irreversible which means that your customer will have to contact you directly if they intend on getting a refund which helps to control the issue of chargebacks. Your business will never be left stranded.
If you are interested to know what you can buy with Bitcoin and other cryptocurrencies, the list is endless, from travel flights and online websites to a simple task such as buying clothes. You can even deposit money in online casinos such as Jackpot Capital and Sportbet Casino. Even though some of the highly rated NJ online casinos on sites like playinglegal.com aren’t accepting crypto at the moment, things might change in the near future as crypto becomes more and more mainstream.
Here is a more detailed list about what you can buy with cryptocurrencies:
- Transportation methods such as cars, private jets, yachts, etc.
- Real estate
- Food & Drink
- Web services, domain names and a VPN
- Flight tickets
- Donate to charity
- Other cryptocurrencies
The list is endless and so are your business advantages when using and offering cryptocurrency payments.
Cheaper and Safer Cloud Storage
Blockchain storage applications allow customers, including small to medium sized businesses, to store their data in a secure manner at a reasonable price. All this without compromising their data security or overspending on safety measures. Security can also be measured due to the fact that a transaction cannot be reversed.
Safety and security are at the top of everyone’s list when making a transaction. Using a credit card as your payment method, all of that transaction history will be recorded. The best thing about using cryptocurrency is that every transaction is unique. Information can only be shared if you want to disclose it to recipients. Your identity is always protected.
Leveraging Smart Contracts
Small businesses can use cryptocurrency for smart contracts. The contract will be recorded in a way that cannot be altered or manipulated. Such contract examples include agreements with vendors or suppliers, commercial leases, or employee contracts. These smart contracts allow small businesses to achieve a level of protection that would otherwise be incredibly expensive.
Cryptocurrency allows small business owners the ability to raise their capital through Initial Token Offerings, commonly known as ITOs. ITOs are an alternative to banks and lenders as they consist of tokens that are available for exchanges, and they can be freely traded. These tokens resemble equity or a revenue share in a company.
ITOs are becoming more and more popular over the years as they are being seen as a viable way to raise capital for businesses of all sizes. These tokens can be traded, sold and/or purchased.
Attract New Customers
Cryptocurrency has issued a new way of building trust and it is being seen as a viable method for privacy and security. Customers who understand blockchain are more likely to buy from businesses that offer this technology. Since cryptocurrency is still fairly new as a payment form, offering it as an option to your customers could help you bring in new ones to your business.
A payment made with cryptocurrency cannot be reversed after. This is one of the main differences of when paying with a credit card. A credit card payment can be reversed using chargebacks which is a feature that most fraudsters exploit. Using payment methods like Bitcoin will reduce fraud and, in turn, make customers feel safer when buying from your business. There is always a reliable encryption technique in every transaction process to protect from hackers.
Cryptocurrency removes all barriers, making transactions faster and easier. By removing restrictions and barriers, international trade is made more accessible. Accepting payments in different currencies is also less of a headache with cryptocurrency.
Stay on Top of the Game with Your Competitors
Cryptocurrency is still fairly new which means that you can acquire an edge above your competitors. Don’t stay away from change. Be an early adopter of cryptocurrencies like Bitcoin to stay on top of your game.
The variety of advantages for small businesses using cryptocurrency are endless and it will definitely put their business to the next level when it comes to speed and security. As cryptocurrency becomes more popular and widely used, keep a look out for new technologies and how crypto will develop so that you can gain an edge over other businesses and use it to your advantage.
Incorporate cryptocurrency to your business model today and reap the benefits that this new form of payment has to offer.